A federal judge has blocked Donald Trump from removing Federal Reserve Governor Lisa Cook from her position, at least for now, as she fights her dismissal in court.
According to report, Judge Jia Cobb made the ruling on Tuesday, just days before an important Fed meeting on interest rates.
The judge said Cook has a strong chance of winning her case, particularly her argument that Trump broke federal law by trying to fire her without proper cause.
The Federal Reserve Act says Fed governors can only be removed “for cause” – meaning there has to be a serious, legitimate reason.
Judge Cobb wrote that “the public interest in Federal Reserve independence” supports keeping Cook in her job.
This is actually the first time in the Fed’s 111-year history that a president has tried to remove a Fed governor, making it a pretty big deal.
Trump’s team claims Cook committed mortgage fraud back in 2021, saying she lied about where she lived to get better loan terms. Cook says that’s not true.
But Judge Cobb pointed out that even if it were true, it happened before Cook started working at the Fed, so it might not even count as grounds for firing her.
Trump has been pushing the Fed hard to cut interest rates and has frequently criticized Fed Chair Jerome Powell, once calling him “Mr. Too Late.”
Trump announced Cook’s firing on social media last month as part of his plan to shake up the central bank.
Cook’s lawyer, Abbe David Lowell, called the judge’s decision crucial for preventing political interference with the Fed.
He said allowing Trump to fire Cook “would endanger financial stability and undermine the rule of law.”
Cook, who became the first Black woman Fed governor when she was appointed in 2022, will now participate in next week’s policy meeting while her lawsuit continues.
Trump didn’t comment when asked about the ruling.
